Key industry challenges highligted, as Association President Michelle Muscat calls for reform.
Earlier this year, the Association of Catering
Establishments (ACE) presented its findings
from the latest Pulse of the Industry report,
shedding light on the pressing issues facing the
catering sector in Malta.
The study, conducted between July and December 2024,
revealed a concerning decline in customer spending and
overall revenue, with smaller businesses feeling the strain
while fine dining establishments maintain higher profit
margins.
Among the top challenges identified by industry
operators, the Skills Pass requirements emerged as
the leading concern, driving labor shortages as workers
opt for industries without such restrictions.
Other key
issues included the BCRS scheme, HR shortages, waste
collection regulations, and market saturation.
ACE has urgently called on the government to take
decisive action to support the catering sector,
highlighting key priorities for reform.
These include a
reduction in VAT from 18% to 7% to alleviate financial
pressures, revised licensing frameworks to prevent
market oversaturation, optimisation of the BCRS system
to eliminate inefficiencies and reduce costs, and a
stronger focus on workforce development to address skill
shortages and improve employee retention.
During the event - which was also attended by the
Deputy Prime Minister and Minister for Foreign Affairs
and Tourism. Dr Ian Borg - ACE President Michelle
Muscat underscored the need for a unified approach.
“Despite these struggles, the industry has achieved
significant milestones, with Maltese restaurants receiving recognition in the Michelin Guide 2025 and Forbes Travel
Guide's Rating. We look positively ahead because the
government has always supported the industry. Hand
on heart, the industry would be in a much worse state if
the government hadn’t intervened during the COVID-19
pandemic," she acknowledged.
However, she stressed that while these efforts were crucial
in stabilising the sector, additional support is necessary to
ensure its long-term viability. Urging industry operators to
take a proactive approach, she cautioned against short-
sighted decision-making.
"Every operator must understand that their actions,
their decisions, and their inactions will inevitably
affect the industry at large," she warned, calling for
greater responsibility among businesses.
She emphasised that sustainability is a shared
responsibility, requiring cooperation between ACE,
business owners and policymakers.
Concluding her address, she called on all
stakeholders to unite in strengthening the catering
industry.
"May I ask each and every one of you
present, in your capacity, to join forces to make this
industry one for all of us to be proud of," she stated,
reinforcing the need for collective action to secure
a prosperous and sustainable future for Malta’s
hospitality sector.